TRANSITION,
INCOME DISTRIBUTION AND POVERTY IN THE COUNTRIES IN TRANSITIONSummary

In the first several
years of transition, dramatic changes have occurred in the majority of
conventional indicators. Comprehensive economic reforms have been followed
by a substantial setback in output, decrease of consumption and wages,
and increase of unemployment. In addition, transition has helped towards
the growth of inequality, and all the basic elements of transition - elimination
of price control, strengthening of the private sector, property reform,
liberalization of wages - have taken effect towards the rising inequality.
Growth of inequality is, to a certain extent, an unavoidable outcome of
transition. However, growth of inequality followed by growing poverty,
jeopardizes further implementation of reforms.Key words: transition,
poverty, income distribution, inequality, unemployment.